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How Will U.S. Emergency Assistance Be Divided?


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Another answer to the topic question.

86 billion will be handed to union$ with no strings attached.
 

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The $1.9 trillion emergency spending bill Congress passed in early March was full of items that had little to do with the COVID-19 panicdemic, the ostensible justification for the package. Perhaps the most indefensible provision was an $86 billion bailout for unions' private pension funds. This unprecedented handout could pave the way for a much more expensive bailout of public-sector pensions.

The American Rescue Plan Act creates a new federal grant program to support multiemployer pension funds. There are more than 1,400 of these retirement plans, which are jointly funded by unions and the private companies that contract with them through collective bargaining agreements. All told, this arrangement serves more than 10 million current and retired workers. Most of the funds are doing fine, but 124 of them are in "critical" financial condition, according to the Pension Benefit Guaranty Corporation (PBGC), a federal entity created in the 1970s as a financial guarantor for multiemployer pension plans, which is itself on pace to be insolvent by 2027.

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A 2017 study by the Government Accountability Office found that the Central States Pension Fund, one of the largest and most deeply indebted private multiemployer funds, would have 91 percent of the assets necessary to cover future costs if it had achieved its target annual financial return of 7.4 percent every year since 2000. Instead, the fund has earned an average of less than 5 percent annually and was on pace to run out of money by 2025.

Democrats who championed this year's bailout, such as Sen. Sherrod Brown (D–Ohio), say federal funding is necessary to prevent painful cuts to retirees' income. Brown is right that workers are not to blame for the pension funds' fiscal problems. But a federal bailout won't encourage troubled plans like Central States, which provides retirement benefits for truck drivers, to invest more wisely.

The American Rescue Plan "is likely to breed what economists call 'moral hazard' as plan managers and sponsors realize there are no consequences to underfunding and overpromising," Sen. Chuck Grassley (R–Iowa), former chairman of the Senate Finance Committee, said on March 5 during the Senate's floor debate over the bill. A "no-strings bailout" of the pension funds, he added, means "the American taxpayer will be left footing the bill for a private-sector retirement system."

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Cruise lines should be bailed out by the country whose flag flies from their ships. 

Yes, I am a US citizen and the last time I lived in the US was 1996.  So I guess that makes me an expat. And  the icing on the cake is thanks to productive citizens like you, I have spent my mone

Is this even a question?  The current economic situation proves the US economy is consumer driven.  When we stop buying stuff, shit collapses.  Yet we keep trying to prop us the businesses, especially

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Half of the panicdemic's unemployment money may have been stolen

 

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Blake Hall, CEO of ID.me, a service that tries to prevent this kind of fraud, tells Axios that America has lost more than $400 billion to fraudulent claims. As much as 50% of all unemployment monies might have been stolen, he says.

  • Haywood Talcove, the CEO of LexisNexis Risk Solutions, estimates that at least 70% of the money stolen by impostors ultimately left the country, much of it ending up in the hands of criminal syndicates in China, Nigeria, Russia and elsewhere.
  • "These groups are definitely backed by the state," Talcove tells Axios.
  • Much of the rest of the money was stolen by street gangs domestically, who have made up a greater share of the fraudsters in recent months.
  • ...

 

So I guess one current answer to the topic question is, "however foreign governments and criminal gangs that received PANIC assistance want to divide the loot they stole."

 

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